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Does it make a difference if they are new or not??

One problem you'll face if you don't take care of the deferred maintenance yourself is that buyers will always over estimate how much it will take to fix a problem. Another problem is that you'll find a lot of buyers that will take a look at all the deferred maintenance items they can see on the surface and wonder what problems are there that they can't see.

Some of the issues you state aren't really deferred maintenance, but rather updating. The popcorn ceilings, and kitchen cabinets are really just updating. The rest of your items are deferred maintenance and should definitely be done before listing.

You need to be smart in doing the work. Don't put in the best carpet, you won't recoup that, but you will recoup a less expensive grade of carpet. Make good choices in your flooring for the kitchen and bath, you don't need to go super expensive.

It sounds like this is a starter home. A STARTER BUYER is not going to be able to come up with the money to fix that stuff. They are looking for a place that while higher in price can be incorporated into their mortgage. They are not going to have the cash they need to fix all that. And if YOU think repairs are disruptive, I'm sure a buyer will think so, too. It's stressful enough for buyers just buying and moving into a home without having to do all those extra tasks. You will DEFINITELY get less money for it in the present condition and may only appeal to an investor at a very low-ball figure.

As someone who did alot of renos anticipating selling our house, we will not make one cent of it back. In fact, call it POOF!

Our house sounds alot like yours is now. We ripped out all the flooring and put in new tile and carpet in the bedrooms. Fresh paint on ceiling and walls. New Light and plumbing fixtures. The house is completely updated.

We are getting 18K less than we paid two years ago. That doesn't include the 15K we put into the updates.

Reduce the price of this starter home rather than going through the headache of all the renos and not even knowing if you will get the money back. Either that, or try to find some decent tenants, rent it out and then sell it when the market gets better.

I would absolutely NOT spend all that money to sell in today's market.

Cordovamom: you make a good point. For that matter, I myself may be overestimating the $ it'll take to get the house up to snuff. I've been so overfaced by the idea that I haven't even gotten to the point of getting quotes. I probably should do that before completely dismissing the idea of doing the work.

Redcurls: I do see that a starter buyer doesn't want to pay for these things, they want a turnkey purchase. Natural; that's what I want too...Maybe I was envisioning selling the house to another 'flipper' and letting them do it.

It'a fairly large tri-level but in a neighborhood one street from duplexes and two streets over from apartments. However, it is in a quiet cul-de-sac which ends in a community park. We are not immediately adjacent to the park but in the middle of the block. I know, too much information! Anyway, all that to illustrate that it's a starter in location and builder quality, though not really in size (2700 sf).

Sparksals: your reaction is confirming my gut instinct; that beyond some inexpensive cosmetic stuff, we wouldn't recoup the money from renovations, therefore there's no point putting ourselves through it.

A little more info re the roof; it won't require a full-on replacement, but a layer of new shingles. However, the deck REALLY needs to be done; it's borderline rickety and perhaps not safe.

I think I'll look into the cost for the deck and the roof...and the exterior paint...consider doing those...while leaving any interior changes to the people coming in.

I've gotten an interestingly wide range of responses on this. I would like to hear more, as you folks have brought up some points I hadn't even considered. Exactly why I posted here...I welcome more input. Thanks!

I doubt you would get back all the money spent on improvements and that may be true in a seller's market as well (depending on where you live). That said, if you DON't do any improvements, you may not sell the house at all - at any price.

I agree with Cordovamom - some of what you listed aren't necessarily maintenance issues but update or upgrade ones. If that's the entire list, I would paint the exterior (and maybe get a new front door), replace the roof, and replace the carpeting. Then, I would address anything that is damaged (e.g., laminate floor?) or broken (light fixtures, for example) or failing.

Talk to a REA or two and see what they say. They often know what would make a house sell faster versus not at all.

That all said, do you really need to move right now? It may make more sense to stay where you are, save money, and fix up the house over a year or so and wait for the market to rebound.

Do we really need to move right now? No.....Are house prices for replacement houses really, really low right now? Yes.....so that seems tempting.

Seems tempting to jump to a better house altogether, buy while that price is low, then when the market recovers we have a property that is inherently worth more, and will be easier to sell. And easier to dress up, since the quality of construction will be better, and the neighborhood will be better...a step up in every direction.

My logic is that the inheritance money (maybe 50K) will make us less dependent on getting so much out of the house we're selling. Otherwise with our current financial picture, we would need to maximize our profit from our old house to be able to get into a better one.

But the inheritance money changes that dynamic, and I'm pretty confident that the market is going to recover within a few years, so I don't feel it would be a bad investment. I do feel it might be a bad investment to use the inheritance money to try to make this house into what it isn't: a borderline rental house/starter house/flipper's house.

I think you'll be able to sell it with no updating, provided it's priced appropriately. My mother was able to sell our old house quite a few years ago without putting a lot into it. She sometimes mentions that she's sure the buyers got a lot more for it when they sold... but part of the benefit for her was that she didn't have to mess with all of it.

The question is whether you'll be able to stomach the appropriate price-- I think a lot of people have a hard time accepting pricing reality these days.

Incidentally-- my mother says that one of the things the new buyers did was chop down all of the trees and take out the bushes so that the place looked more like new construction. Has anyone ever heard of such a thing? It seems crazy to me.

My husband and I sold two houses this year, both starter homes in different towns. Sold one in February and the other in July. For the first house, we had the kitchen painted at a cost of $400. For the second house, we had the kitchen, bathroom, hallway, one bedroom, and living room painted at a cost of about $1,000. This included a ceiling repair in the kitchen (paint was peeling). We did not recoup our costs, but I do believe doing these things helped both houses sell faster. House #1 was on the market 4.5 months; house #2 was on market 3 months. That might seem like a long time to you, but in today's market, it's not! My advice would be to do the bare minimum it would take to sell the house. As you've said yourself, this is not a high-end house and never will be, so don't spend tons on money on high-end paint, flooring, etc. Go low-end and price the house accordingly and be prepared to not recoup your costs if you really want to sell. I would definitely talk to a few realtors and see what they suggest insofar as improvements/upgrades, etc. They know the market better than you and will be able to advise accordingly. Good luck!

The question you need to answer is: Are you prepared to sell THIS house for 50k below comps?
If you are then it's a no brainer. Do it.

You're in a tough spot because of the slow market. From your description of deferred maint. 40k sounds right for updating a 2700 sqft house. In this market you will not get top dollar even if you put top items into the house. People are looking for a steal, that is, IF people are even looking.

There is no such thing as selling high & buying low. If you choose to sell the house as is, you will have to sell it really low. The buyers perception of work is always magnified. Sure, you will get a deal, but you will have to practically GIVE your current house away, given the shape it's in.

However, I think you are better off leaving it & selling it low. In this current market, there are more people who prefer a bargain & to remodel themselves, rather than paying top dollar for a remodelled place.

I would clean it up, declutter, maybe paint some areas to make it look presentable.

I'm not sure what the market is like in your area, but if I were you I'd start looking at what price comparable houses are getting. You will be dropping 40-50K off what the house is *currently* worth, which may be less than what you paid for it.

If you have to sell this house really low, the new house you buy may not be such a bargain after all...

is the deck elevated to a 2nd floor? if not, why not just rip it down and put some steps right there. your only cost would be to haul off the old deck and a set of stairs.

as to the roof, is it leaking now? if not then i would leave it be and maybe offer 5k in conscessions IF the buyer asks.

carpet is cheap compared to other flooring. get a low to mid grade and ask around for guys who do it onthe side if you and your husband cannot DIY. at work we had almost 1000 sq ft of carpet and pad installed for under 1.00 per sq ft materials and labor by getting a guy to do it on the side.

cbainets, either clean them up, or if possible paint them.

for the ceilings, throw on a coat of bright white ceiling paint and be done. popcorn does not look right with any other color! my house has all popcorn ceilings, as do almost every house around here, and you honestly do not even look at them.

Clean, clean, clean, and clean again.

Paint inside and out. Some commercial buildings in my town have been repainted on the outside and boy does that one thing make a big difference.

If something is broken, ripped, or torn, replace it. But otherwise, just let things be and see what happens. Don't update, just replace what is needed.

davidandkasie: Yes, unfortunately the deck is elevated to the second floor.....the roof is not leaking, nor ever has while we've lived here...as for painting the cupboards, would it be best to paint them white? Thanks for your suggestions.

clemrick: I would of course expect to clean the house to within an inch of its life before showing it...that's a given for me.

olga_d: I will do some research into what equivalent houses are going for in the last two weeks or so. Thanks for that input.

Definitely paint the exterior for curb appeal. Also, it appears that you are afraid the inheritance is going to burn a whole in your pocket. Don't forget you can always due the repairs slowly over a year and invest that chunk of change for hopefully a little return in the time being.

"....as for painting the cupboards, would it be best to paint them white?"

I think so. We had the doors and exteriors of our cupboards painted white in the second house we sold. The cupboards were a dark maple color but very worn. Someone had accidentally dumped bleached on one door and it looked terrible. My DH really didn't want them painted since they were original to the house, but when our realtor advised it be done, he changed his tune.

dweenoleena, if the roof isn't leaking, why would you re-shingle it? Also, check your local building code. Some jurisdictions don't allow re-shingling because of the additional weight it puts on the structure. Other places allow it, but only once, then you have to rip both layers off and re-shingle completely.

If it isn't actually BROKEN, do not fix it.

So, repair the laminate flooring.

Do nothing w/ the cabinets, no matter how old or flimsy they are.

Don't mess w/ the roof.

If the carpet is only five years old, even it it's cheap, can it be re-installed? So that it's not wrinkled, etc.? I'd investigate that before I did anything with carpet.

Only fix whatever parts of the deck are damaged.

Unless the vanity has water damage, leave it. As for the other bathroom stuff like tub surround and flooring--it is really, really worn looking? Or damaged? If so, maybe change it. Otherwise, leave it.

I think that if you don't plan to leave that town for the next 3 years or so, now would be a good time to use that inheritance to boost your equity to move you into a home more suitable for your family.

Buy low, sell high, after all. Now is the time to buy low. Maybe the bottom isn't that close in your neighborhood--maybe the estimation is that the market will still drop a little more. If you thought that, you could wait however many months. But I would rather buy just before the bottom than just after; I'd worry it would travel up too fast.

(I also have a prejudice that things like inheritances should have an impact on your family's well-being, and buying a home that makes your life better would fall into that category for me)

I agree w/ the "research the market" idea--see what's out there among your competition, and in the category you'd move up to.

(I also agree that you don't *have* to spend that inheritance--you can bank it in its own spot so it can't be whittled away, and use it to do the same thing, just later. But I also think that now would be the time to buy a better place, since you've got the money, and prices are low)

I've done a little market research. There are comparable houses in our neighborhood on the market for 129K, 143K, and 152K. By comparable I mean in year built, square footage, type of house (bi or tri level), number of beds and baths. The more expensive ones have had the vinyl flooring and carpeting replaced with wood flooring, and the most expensive one has a fireplace and updated kitchen.

We bought our place for 118K in 2001. I'm guessing that a REA would set its current price between 130-140K. Two years ago it would have been priced at more around 150-165K...our market has softened but not rotted completely, especially for houses under 200K.

So, looking at those numbers, I'm not really willing to shear 40K off the price...that puts us at selling for less than we paid for it. I'm thinking that exterior paint and re-stretching the carpet, and making structural repairs to the deck, would be my priorities in terms of spending money.

OK then; I've never had a house painted before. What can I expect to pay for an exterior paint job on a 2-story house in the Midwest?

The price difference between $129k and $152k is $43k.

I think that's definitely offset by the expenses of installing wood floors and a new kitchen. Maybe not completely, depending whether they did DIY and if labor is cheaper where you are (I did a small kitchen redo in 2004, and spend $32k; with nothing expensive at ALL--$600 stove was the big splurge, and $1,000 on counter--but NYC labor prices)

And remember, those are ASKING prices, not sale prices.

One more thing to add to your research: look for how much houses like yours have recently sold for, not how much they are listed at. That will tell you a lot more about what price you can realistically expect. You can't look it up yourself (I don't think) but a RE agent can easily pull it up on a search.

Best of luck!

talley sue: I think you meant 13K, not 43K....

I get the impression from your first post that neither you nor your husband is particularly handy. Painters, roofers, carpet guys, etc are going to spot this quickly. So, one other consideration is that unless you are cautious, get multiple bids, and are LUCKY you may overpay...either through simply paying too much or by getting a poor quality job for your money. Plus, you have the major headache of arranging for all this to happen.

Why don't you decide on a budget, say 10K, and have several realtors come over and give you their opinions on how you can spend 10K to your best advantage.

talley sue: "The price difference between $129k and $152k is $43k."

dweenoleana: "talley sue: I think you meant 13K, not 43K"

Uh, not quite, but you're getting closer, lol. Anyone else want to try? Where's Jeff Foxworthy when you need him? lol

How about $23K. I think that I am probably smarter than a 5th grader.

Well, they say if you're going to make a mistake, make a nice big juicy one! LOL I am not now, nor expect to develop into, a person with a clear grasp of basic math...I do have other talents to balance that out, however.

Be that as it may, it's true that neither my husband or I have any experience roofing, stretching carpet ourselves, or doing exterior painting. I did build a micro-deck once - that's about it. If anything I am the handier of the two of us - not saying much. So we would definitely need to do comparison shopping and get quotes before settling on people to do these projects.

Before having your heart set on getting the carpet stretched, I'd get an estimate for replacing the carpet. The price of getting it stretched may work out to be close to getting new cheap carpet put in.

"Stretched carpet" isn't going to be a selling point. New carpet, on the other hand, would be a selling point. If you are absolutely dead set on not getting new carpet, I'd not even bother with stretching it and look into mentioning a dollar figure in the listing for carpet replacement.

well, my kid's in 4th grade still, not 5th yet--that must be my problem.
I only have to be smarter than a 4th grader. And DD has moved on to polynomials, so of course I don't need to know how to subtract for HER anymore, LOL! (and I decided not to use the calculator)

But once we do the math properly, that just proves my point even more strongly--those houses are worth more because they SPENT more. So you won't get it back, so you may not need to spend it. Or if you spend it, don't count on getting that much back.

Here's a wacky thought: take what you paid for it, figure in commission, put it up for sale by owner with that price-just stick a sign in the yard with your phone number, the number of bedrooms, and the price.

No flyers, no additional info to turn anyone off.

If it sells, hooray, you're done! You've lost nothing, and if you sell it without a realtor you have that commission cost to keep or use as a buffer when negotiating.

If not, then you know you need to do some of the above suggestions...

also, when figuring the price, add in all the improvements you did-popcorn ceiling, etc....

We have been living for about 5 years in a house we bought after only 2 days of looking... and decided to get into a place quickly rather than rent at all. We grabbed the house that fit our needs best that was up for sale that week and in our price range.
My husband is a music teacher, I'm a graphic designer and was a stay-at-home mom...now that we've been living here some years we have a better idea of the neighborhoods available and also have different ideas of what we want in a house. The house we're in now was built in 1973, and built so cheaply, it's really kind of awful. Popcorn ceilings in every room, for instance. The people we bought it from did a quick flip with it, used the cheapest materials they could, put in carpeting without stretching it...you name it. We could put a bunch of money into getting the ceilings scraped and all the trim replaced and the cheesy, featherlight doors replaced...but it's just not going to make it into a nice house.

My question is: how much of the deferred maintenance has to be done before we sell? I know buyers want a house they don't have to work on, but if we're going to have to pay for the work either out of the house price or out of our pockets, it would be a lot less disruptive of our lives to let it come out of the house price.

A quick synopsis of what needs to be done: exterior paint, roofing, carpet replace in all rooms, wooden deck teardown and replace in the back yard, cabinets in the kitchen updating/replacing, repair laminate flooring in kitchen, re-do bathroom (including replacing vanity with a pedestal sink, replacing tub insert, and replacing flooring)

I hate to say it but this sounds like one of those, he who decides to buy in haste gets to repent or sell at leisure. While I do not know your market, sounds like you may have paid too much back in 2001 since this was before the big run up. This may be your problem more than whether you need to replace the laminate.

As for what you should do, a friend who is trying to sell a similar house in our area (where it costs 4x as much) found a handyman who was someone's cousin's BIL. For less than 1000 he touched up her paint, repaired her bathroom, and generally made the house look presentable. Neither she nor her DH is handy but you do not have to be to comparison shop or get estimates. Building a deck and painting are not that complicated, my BIL did it as a teenager (second floor off the kitchen). Not suggeting you build it but rather try to get a deal when it is built. She was advised to leave her 1960s kitchen alone, just make sure anything broken or torn was repaired. Stick a scatter rug over the linoleum if it cannot be repaired

When you first posted I assumed you lived in an area with 400k starter houses as I do. It simply does not make sense to put in another 30% in a house worth 130k

Many young buyers want a fixer both so they can save off the price, since there are plenty of DIYers who are handy and because it gives them control over the outcome rather than living with someone elses taste

I would make ssure nothing is broken or would immediately elicit a yuck reaction. If the paint is peeling or chipping paint it. If the deck is ready to fall over, then definitely replace it but do it cheaply. As housing worsens, it will be a lot easier to find cheap labor in a few months time. Plus you cannot paint outside until spring anyway

I would also get a couple of broker opinions, they may see things that you do not and even know who can fix this cheaply

My brother recently bought such a house as yours. It takes a unique person to WANT to take on so many needed repairs--especially necessary repairs such as a new roof. The house he bought will be a great house, but it was completely neglected by the former owner, so it needs everything. Anyone who buys such a house has to have extra money stashed away to start fixing right away. Today, few people have the resources. So you have to find just the RIGHT buyer and that might be difficult, but not impossible.

You can't sell neglect like it's a value. Neglect only has value to the buyer, so you might have to accept a pretty low offer to get out from under the house. In some communities, there are people who buy houses like yours as investments--they fix them and rent them. Maybe looking into that would get you a quicker sale.

Clean up and fix whatever is broken.
Unless you can do some work yourself you may not make much at all after commissions and selling expenses.
Only 5 years is not a very long time to do more than break even without a lot of sweat equity improvements.

At the very least you had a place to live, got a tax break on the mortgage payments, and can maybe escape with a little money.

If the house is a 'starter' you need to look at the SOLD prices of similar starters.
Improving may move the price above the starter category.

The house is what it is, an older house in decent condition that needs updating.

Do you really need to sell it anyway?
Can it be rented for at least a neutral cash flow?

if it was me,i'd think about using the inheritance as a down payment on a new property and keeping the starter home as an income unit,if possible.

In fact, this is what we have decided to do. We will hang on to it, rent it, and use the inheritance as a DP on another place. We would be in the same town, so no trouble keeping an eye on the place. We may hire a property management company, we haven't decided on that.

The problems with the house are not going to go away and will only get worse with time.

"In my gut, what I want to do is just walk away from this house, sell it for what we can get for it, and have done. I'm exhausted just thinking about doing all the legwork to get quotes for all the work to be done."

If its causing you grief now...

If something is prohibiting you from maintaining the house now it will only get harder with a tenant. Your rights and access to the property will become limited and your ability to do normal homeowner type repairs without hiring a professional might also be affected. Depending on how much of a mortgage payment you have on the house you may not be able to demand enough in rent to cover it (rent increases generally have not kept pace with housing prices). The house could also be vacant for periods of time leaving you to pay the entire mortgage. What if the tenant "falls behind" on rent? - How long will it take you to evict them while you pay the entire mortgage? 1 month? 3 months? Court dates? What about your insurance policy? I haven't heard much good about property management companies, what is their downside while your property is vacant, would they want to rent the properties that they own before yours?
The condition and location of the house didn't sound like you will be getting your choice of renters without doing the repairs anyway- would you rent it?

Interview a few listing agents in your area and see what they have to say about the current market value of your home with only minimal fixes and ask about their research. Fixing the roof is usually staightforward and will definately be something that lenders and buyers would want done.

Good luck!

I agree with cheapheap. Your question merely changes to "What needs to be done before I can rent out the house?" You will still need to maintain the house and that means taking the time (and money!) to get it into shape before putting it on the market be it to rent or to sell.

Then you really need to think through how you would handle a rental property. The little details, not just whether or not you will hire a property management company or do it yourself.

I have been living vicariously (thank goodness) through a friend who has two rental houses (they decided not to sell their houses but to rent them). Well, there have been months where they have no tenants (but they still have the mortgage payments!). They have to interview potential tenants and with both spouses working, this becomes an amazing dance involving the tenants' work schedule, the friend's work schedule, children's school schedule and activities. If you get a dud tenant (one that doesn't pay on time or ever), apparently it takes a long time to evict them or get them to leave. I saw my friend go through 8 months of trying to either 1) get the rent money or 2) evict a particular tenant. In other words, it's easy to say 'let's rent out the old house' but it's not as easy to do.

I too am a procrastinator. I agree that it will take the same effort to fix it up for sale as for rent. My advice would be to earmark 5k or some other reasonable amount to fix the obvious problems. Call a realtor to get an estimate on what needs to repair in either. Then find a new house, make sure you underpay this time in this falling market. Move out and complete the repairs. I would leave a token amount of furniture for the first 3 months, staged and see if the house sells. If not then rent it out. However, a management company does not make sense if you are local and it does not sound like you have the landlord personality. Once you and your kid and pets have moved out it will be a lot easier to stage so a sale may be possible

Can't advise you on what to do but reconsider spending your inheritance on fix ups for the house. You will need every penny of that money and spending it now strikes me as throwing it away.

Should you decide to sell give an allowance for carpet and possibly whatever thing the showings uncover that is causing it to not sell. Assuming it isn't expensive.

Work the fix ups into your everyday budget. A can of paint here, a repair there. You have the time and you won't overspend and will be OK.